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USPAP Practice Test | 2024 Questions &
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The PREAMBLE states the purpose of USPAP is to maintain public ___ in the appraisal practice by establishing requirements for appraisers. - ✔✔trust USPAP benefits providers of appraisal services and - ✔✔users of appraisal services. Which is NOT considered significant real property appraisal assistance? - ✔✔collecting employment data for use in analysis A valuation service performed by an individual acting as an appraiser requires the appraiser to - ✔✔inquire about the intended user's expectations. When an individual is performing valuation services outside of appraisal practice, that individual must be careful to - ✔✔not misrepresent his role. When choosing to provide a valuation service as an appraiser or in some other capacity, great care must be taken to - ✔✔maintain public trust. A real property appraiser teaching appraisal is engaged in - ✔✔appraisal practice with no applicable Standards (1-10). A lender has telephoned an appraiser to determine the high and low sales prices in the past year that took place in the Green Hills Subdivision. No mention was made of a subject property by the lender. The appraiser has supplied a list of all of the sales within the past year in the subdivision and billed the lender for service. The service being provided by the appraiser is - ✔✔appraisal practice with no performance standards or record keeping requirements. In accordance with USPAP, which is NOT an expectation when acting in the role of an appraiser? - ✔✔holding a state license or certification
Compliance with USPAP is required when obligated by - ✔✔agreement, law, or regulation. When an appraiser is providing a service other than an appraisal or appraisal review, which would NOT apply? - ✔✔RECORD KEEPING RULE Zachary's client instructs him to report a specific property value as a condition of the assignment. The assignment - ✔✔is a violation of the ETHICS RULE. Which of these activities does the Conduct section of the ETHICS RULE prohibit? - ✔✔criminal conduct Jack appraised a residential dwelling that is located across the street from a factory that he determined is negatively affecting the value of the subject property. Jack applied a location adjustment in his sales comparison approach. However, the client asked that the factory not be discussed in the appraisal report. Since Jack addressed the condition with an adjustment, has he complied with USPAP? - ✔✔no, omitting the discussion could produce a misleading report Anthony received an appraisal assignment for a property that was previously appraised by him. He understands that be must handle confidential information appropriately. What else must Anthony do? - ✔✔make proper disclosure regarding the prior assignment Marcus was hired to appraise a home that be had previously appraised one year ago. May Marcus accept the assignment? - ✔✔yes, as long as he discloses the previous service on the property to the client and in the subsequent report certification A real property appraiser has paid a fee to procure an appraisal assignment. According to the Management section of the ETHICS RULE, where must the fee be disclosed? - ✔✔in the certification and any transmittal letter Josh received an appraisal request from a lender-client who told him, to immediately call if the value on the property is less than the amount stipulated by the lender, as he doesn't intend to pay for an appraisal that won't benefit his position. Will acceptance of this assignment be in compliance with USPAP? - ✔✔no, an appraiser may not accept an assignment with unacceptable assignment conditions
When an appraiser is providing a value opinion using an effective date in the past (retrospective), when does the appraiser's competency apply? - ✔✔at the time of the assignment Which would NOT be considered a competency factor in a particular assignment? - ✔✔appraiser 's credentials If an appraiser is unable to comply with the COMPETENCY RULE to complete an assignment competently, he is obligated to - ✔✔decline or withdraw from the assignment. The Conduct section of the ETHICS RULE requires the appraiser to disclose previous services as an appraiser or in any capacity regarding the subject property for what period of time prior to accepting an assignment? - ✔✔three years Disclosure of fees, commissions, and things of value given in connection with the procurement of an assignment must be disclosed in what part of a report or specific document? - ✔✔certification and any letter of transmittal Authorization to affix or use an appraiser's signature can be granted only - ✔✔on an assignment-by- assignment basis. According to the RECORD KEEPING RULE, what information is NOT required to be in a work file? - ✔✔specific names of other intended users Which is NOT an element of problem identification? - ✔✔reporting option to be used in the assignment Most of the information necessary for the appraiser to identify the problem in a particular assignment - ✔✔requires communication with the client. An appraiser's peer is defined as: - ✔✔other appraisers who have expertise and competency in a similar type of assignment.
When can an extraordinary assumption be used regarding information not available to the appraiser due to assignment conditions? - ✔✔when credible assignment results can still be developed Which is NOT an option when an appraiser finds circumstances that change the research and analysis that he originally planned at the onset of an assignment? - ✔✔disregard the circumstances and proceed as originally planned The scope of work disclosed in an appraisal report must include the - ✔✔scope of work that was actually performed. Which is NOT a force that could cause an appraiser to invoke the JURISDICTIONAL EXCEPTION RULE? - ✔✔attorney at law When the JURISDICTIONAL EXCEPTION RULE is invoked, who determines if the Rule is appropriate? - ✔✔the appraiser Scope of work is the "type and extent of research and in an assignment. - ✔✔analysis Which would NOT be part of the scope of work decision? - ✔✔reporting option and format The scope of work in each particular assignment must be determined when the assignment involves - ✔✔an appraisal or appraisal review. When deciding the scope of work, an appraiser must be prepared to demonstrate that the scope of work is sufficient to - ✔✔produce credible results. When must an appraiser disclose research and analysis that was not performed in an assignment? - ✔✔when it is necessary for intended users to understand the report properly and not be misled An appraiser must not allow assignment conditions to limit the scope of work to such a degree that - ✔✔assignment results are not credible in context of the intended use.
Standards Rule 2-1 of USPAP requires that appraisal reports contain ___ to enable intended users to understand the report properly. - ✔✔sufficient information Standards Rule 2-2 of USPAP requires an appraiser to which reporting option is being used in the assignment. - ✔✔prominently state in the report An appraiser has agreed to physically inspect the subject property in a particular appraisal assignment. If the appraiser reviews photographs and other documents that illustrate the relevant characteristics of the property and indicates in the certification language that he has physically inspected the property, the report would be: - ✔✔misleading and in violation of the Conduct section of the ETHICS RULE. STANDARD 2 does NOT: - ✔✔dictate the form, style, or format of an appraisal report. According to Standards Rules 2-2(a) and (b) (viii) of USPAP, regarding the information analyzed and methodology used in an assignment, the exclusion of ___ must be explained. - ✔✔the sales comparison approach, cost approach, or income approach The board of The Appraisal Foundation that identifies and addresses issues relating to recognized methods and techniques is the - ✔✔Appraisal Practices Board (APB). Given no agreement with the client to the contrary, an appraiser may provide what information to a third party regarding an appraisal assignment? - ✔✔confirmation that he or she appraised the property The level of information necessary in a report and the reporting option chosen by an appraiser depends on the ___ in an assignment, - ✔✔intended use and intended users If a letter of transmittal contains the signature of an entity, such as a specific appraisal firm, may that entity's signature also appear on the certification of the appraisal report? - ✔✔No USPAP requires that an individual appraiser(s) sign the certification. In developing an appraisal review, Sarah identified the work under review and the characteristics of that work, which are relevant to the intended use and purpose of the appraisal review. What information
should Sarah NOT include when developing her appraisal review? - ✔✔credentials of the appraiser in the work under review Jennifer is reviewing the analyses, opinions, and conclusions of an appraisal report. During this process, Jennifer disagrees with some of the analyses. What must she do? - ✔✔develop reasons for any disagreement A Restricted Appraisal Report may be useful when the: - ✔✔client understands the limited utility of the option. Christopher reviewed and signed the certification for an Appraisal Review Report. This means that Christopher accepts responsibility for the assignment results and contents of the report, as well as: - ✔✔all elements of the certification. In a review of an appraisal report, when opinions and conclusions are expressed by the reviewer that concur or disagree with the opinions and conclusions in the work being reviewed, those opinions and conclusions must: - ✔✔be developed in accordance with the applicable development Standard. Which term is defined by USPAP as a mathematical expression of how supply and demand factors interact in a market? - ✔✔mass appraisal model Which Standard in USPAP expresses that the certification in compliance with this Standard is not intended to disturb an elected or appointed assessor's work plans or oaths in office? - ✔✔STANDARD 6 When a sales comparison approach is necessary for credible results, an appraiser must: - ✔✔analyze such comparable sales data as are available to indicate a value conclusion. An individual is performing in the role of an appraiser consultant in an assignment that does not include an appraisal or appraisal review; thus, the appraiser must comply with all of these USPAP Rules EXCEPT the: - ✔✔SCOPE OF WORK RULE In an appraisal for ad valorem taxation purposes, when only one property is the subject of the appraisal assignment, which development Standard would apply? - ✔✔STANDARD 1
Per the USPAP definition, in order for information to be considered confidential the information must be:
- ✔✔identified by the client as confidential and not available from any other source. Which best describes an appraiser 's work file? - ✔✔documentation necessary to support the appraiser's analysis, opinions, and conclusions Personalized evidence indicating authentication of the work performed by the appraiser describes, in part, which term? - ✔✔signature Which term, is defined by USPAP DEFINITIONS as services pertaining to aspects of property value? - ✔✔valuation services The Standards in USPAP establish a benchmark of criteria to measure: - ✔✔ethics and competency. The PREAMBLE of USPAP sets the tone that the purpose of USPAP is to: - ✔✔promote and maintain a high level of public trust in appraisal practice. In the USPAP Appraisal Process, which is the final step in the development process? - ✔✔reconciliation and final value opinion Which entity or group is responsible for creating and maintaining the national appraiser examination? - ✔✔Appraiser Qualifications Board Which is a direct responsibility of the Appraisal Subcommittee? - ✔✔maintain the National Registry of licensed/ certified real property appraisers Statements on appraisal standards are: - ✔✔an integral part that has the full weight of USPAP. Which board exercises all authority and power over the subject, style, content, and substance of USPAP and other communications related to Standards? - ✔✔Appraisal Standards Board
Which board establishes minimum education, experience, and examination requirements for real property appraisers to obtain certification? - ✔✔Appraiser Qualifications Board Which entity ensures that real estate appraisers who could expose the United States to financial loss are sufficiently trained and tested? - ✔✔Appraisal Subcommittee Shelia had concerns about an appraisal situation, and she was uncertain how to proceed. Sheila then consulted the USPAP Advisory Opinions, which: - ✔✔illustrates the applicability of USPAP in specific situations. Once proposed changes to USPAP are drafted, which body is responsible for ownership of the language in the draft and votes to approve its release as an exposure draft? - ✔✔Appraisal Standards Board
